B2Gold Reports Quarterly Gold Production of 241,593 Oz and Record Quarterly Revenue of $442 M for Q2 2020; On Track to Meet Annual Production Guidance of 1,000,000 to 1,055,000 Oz
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News Release
B2Gold Reports Quarterly Gold Production of 241,593 Oz and
Record Quarterly Revenue of $442 M for Q2 2020;
On Track to Meet Annual Production Guidance of 1,000,000 to 1,055,000 Oz
Vancouver, July 13, 2020 – B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G)
(“B2Gold” or the “Company”) is pleased to announce its gold production and gold revenue for the second
quarter and first half of 2020. All dollar figures are in United States dollars unless otherwise indicated.
2020 Second Quarter Highlights
Consolidated gold production of 239,574 ounces, above budget by 3% (7,327 ounces) and a significant
increase of 15% (30,684 ounces) over the second quarte r of 2019 (excluding discontinued operations
of El Limon and La Libertad)
Total gold production of 241,593 ounces (including 2,019 ounces of attributable production from
Calibre Mining Corp. (“Calibre”))
Record quarterly consolidated gold revenue from the Company’s three operating mines of $442 million,
a significant increase of 65% ($175 million) over th e second quarter of 2019 (excluding discontinued
operations)
No lost time injury (“LTI”) incidents at the Company’s operating mines during the second quarter; the
Otjikoto and Masbate Mines continued their remark able safety performance extending the number of
days without a LTI to 826 days (well over 2 years) for Otjikoto and 592 days (well over 1.5 years) for
Masbate as at June 30, 2020
The Fekola Mine continues to operate unimpeded a nd no operational days have been lost due to the
recent political developments and demonstrations in Mali
On June 12, 2020, the B2Gold Board declared a cash dividend for the second quarter of 2020 of $0.02
per share, paid on July 7, 2020 to shareholders of record as of June 23, 2020
B2Gold remains well positioned for continued stro ng operational and financial performance. Total
consolidated production guidance remains at between 1,000,000 and 1,055,000 ounces of gold; total
consolidated cash operating costs (see “Non-IFRS Measures”) are forecast to be between $415 and
$455 per ounce and total consolidated all-in sustaining costs (“AISC”) (see “Non-IFRS Measures”)
are forecast to be between $780 and $820 per ounce.
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2020 First Half Highlights
Record half-year consolidated gold production from the Company’s three operating mines of 490,206
ounces, well above budget by 5% (23,483 ounces) and a significant increase of 20% (80,774 ounces)
over the first half of 2019 (excl uding discontinued operations); w ith solid performances from all the
Company’s operations (all exceeding their targeted production for the first half of the year)
Total gold production of 506,455 ounc es (including 16,249 ounces of attributable production from
Calibre)
Record half-year consolidated gold revenue from the Company’s three operating mines of $822 million,
a significant increase of 55% ($291 million) over th e first half of 2019 (excluding discontinued
operations)
Based on current assumptions, including a gold price of $1,700 per ounce for the balance of 2020, the
Company expects to generate cashflows from ope rating activities of approximately $850 million in
2020
The Company has been monitoring the COVID-19 pandemic and the potential impact at B2Gold's
operations since mid-February 2020. B2Gold places the safety and well-being of its workforce as the
highest priority and continues to encourage input fro m all its stakeholders as the situation continues to
evolve. The Company has implemented several measures and introduced additional precautionary steps to
manage and respond to the risks associated with COVI D-19 to ensure the safety of B2Gold's employees,
contractors, suppliers and surrounding communities where the Company works while continuing to operate.
The Company is continually updating the plan and response measures based on the safety and well-being
of its workforce, the severity of the pandemic in areas where it operates, global response measures,
government restrictions and extensive community co nsultation. The Company is working closely with
national and local authorities and cont inues to closely monito r each site's situation, including public and
employee sentiment to ensure that stakeholders are in alignment with continued operation, while ensuring
the safe operation of its mines.
Gold Production and Development
Consolidated gold production in the second quarter of 2020 was 239,574 ounces, above budget by 3%
(7,327 ounces) and a significant increase of 15% (30,684 ounces) over the second quarter of 2019
(excluding discontinued operations) with solid pe rformances from all the Company’s operations. The
significant increase in gold production over the second quarter of 2019 was driven by the Fekola Mine in
Mali which continued its very strong operational pe rformance with gold produc tion of 147,424 ounces,
well above budget by 5% (6,424 ounces), and 29% (33,527 ounces) higher compared to the second quarter
of 2019. Fekola’s significant increase in gold production over the second quarter of 2019 was mainly due
to the expansion of the Fekola mining fleet and optim ization of the pit designs and mine plan for 2020,
which have provided access to higher grade portions of the Fekola deposit earlier than anticipated in
previous mine plans. The Otjikoto Mine in Namibia also had a solid second quarter, producing 43,496
ounces of gold, 3% (1,342 ounces) above budget, and 16% (6,075 ounces) higher compared to the second
quarter of 2019. The Masbate Mine in the Philippines continued to perform well through the second quarter
of 2020, despite being limited by a reduced workfo rce due to COVID-19 restrictions, producing 48,654
ounces of gold, approximately in-line with budget.
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Including attributable ounces from Calibre (2,019 oun ces), the Company’s total gold production in the
second quarter of 2020 was 241,593 ounces.
Consolidated gold production for the first half of 2020 was a half-year record of 490,206 ounces, 5%
(23,483 ounces) above budget and 20% (80,774 ounces) higher than th e first half of 2019 (excluding
discontinued operations).
Including attributable ounces from Calibre (16,249 o unces), the Company’s total gold production in the
first half of 2020 was 506,455 ounces.
Based on current assumptions for 2020, B2Gold remains well positioned fo r continued strong operational
and financial performance. On June 24, 2020, Ca libre provided its revised 2020 production guidance
following the temporary suspension of its Nicara guan operations due to COVID-19. The Company’s
attributable gold production from Ca libre is now estimated to be between 37,000 and 42,000 ounces for
2020 (or 8,000 ounces lower than the original es timate of between 45,000 and 50,000 ounces of gold).
However, given that the Company’s three operating mines were 23,483 ounces ahead of budget at the end
of the first half of 2020, the Company continues to maintain its overall total consolidated production and
financial guidance. Therefore, total consolidated production guidance remains at between 1,000,000 and
1,055,000 ounces of gold; total consolidated cash operating costs are forecast to be between $415 and $455
per ounce and total consolidated AISC are forecast to be between $780 and $820 per ounce.
The Company’s expansion and deve lopment projects also progressed well through the second quarter of
2020:
- At Fekola, the mine expansion project remains on schedule to be completed by the end of the third
quarter of 2020. Mining fleet expansion equipmen t (including excavators , trucks, and drill rigs)
continued to arrive on site and be commissioned throughout the second quarter. The mill expansion
continues to be on budget and schedule and was a pproximately 75% complete by the end of June
2020. The mill expansion commissioning team is schedul ed to arrive on site in late July and the
mill expansion is expected to be fully commissioned by the end of the third quarter 2020.
- At Otjikoto, engineering of the Wolfshag underground mine continued and an underground mining
contractor bid process was held in the second quarter of 2020 for the development of the
underground workings up to the production stopes. In line with previously announced schedules,
the development of the portal and primary ramp is expected to commence in the fourth quarter of
2020 and stope ore production is expected to commence in early 2022.
- At the Gramalote Project, operations restarted on May 4, 2020 (following a temporary shutdown
due to COVID-19) for Environmental Impact Assessment related field activities, with exploration
drilling recommencing on May 11, 2020. During the shutdown, other aspects of the Feasibility
Study such as mine engineering review, metallurgi cal investigations and process plant design
development continued to advan ce. Ongoing exploration work continues with a focus on infill
drilling of the Inferred Mineral Res ource which is expected to be completed in August 2020. As
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previously announced, the Company now expects to complete the Feasibility Study in the first
quarter of 2021.
Gold Revenue
Consolidated gold revenue in the second quarter of 2020 was a quarterly record of $442 million from the
Company’s three operating mines on sales of 257,100 ounces at an average price of $1,719 per ounce
compared to $267 million on sales of 203,700 ounces at an average price of $1,312 per ounce in the second
quarter of 2019 (excluding discontin ued operations). Compared to the second quarter of 2019, the
significant increase in consolidated gold revenue of 65% ($175 million) was mainly attributable to a 31%
increase in the average realized gold price and a 26% increase in gold ounces sold (due to the higher gold
production and timing of gold sales).
Consolidated gold revenue for the first half of 2020 was a half-year record of $822 million on sales of
496,600 ounces at an average price of $1,656 per ounce compared to $531 million on sales of 407,100
ounces at an average price of $1,305 per ounce in the first half of 2019 (excluding discontinued operations).
The significant increase in consolidated gold revenue of 55% ($291 million) was mainly attributable to a
27% increase in the average realized gold price and a 22% increase in gold ounces sold.
Operations
Mine-by-mine gold production in the second quarter of 2020 (including the Company’s estimated 34%
share of Calibre’s production) was as follows:
Mine Q2 2020
Gold Production
(ounces)
First Half 2020
Gold Production
(ounces)
2020
Annual Gold Production
Guidance
(ounces)
Fekola 147,424 311,435 590,000 - 620,000
Masbate 48,654 93,526 200,000 - 210,000
Otjikoto 43,496 85,245 165,000 - 175,000
B2Gold
Consolidated (1) 239,574 490,206 955,000 – 1,005,000
Equity interest in
Calibre (2) 2,019 16,249 45,000 - 50,000 (3)
Total 241,593 506,455 1,000,000 – 1,055,000 (3)
(1) “B2Gold Consolidated” - gold production is presented on a 100% basis, as B2Gold fully consolidates the results of its
Fekola, Masbate and Otjikoto mines in its consolidated financial statements (even though it does not own 100% of these
operations).
(2) “Equity interest in Calibre” - represents the Company’s approximate 34% indirect share of the operations of Calibre’s
El Limon and La Libertad mines in Nicaragua. B2Gold applie s the equity method of accounting for its 34% ownership
interest in Calibre.
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(3) Based on current assumptions for 2020, B2Gold remains well positioned for continued strong operational and financial
performance. On June 24, 2020, Calibre provided its revised 2020 production guidance following the temporary
suspension of its Nicaraguan operations due to COVID-19. Th e Company’s attributable gold production from Calibre
is now estimated to be between 37,000 and 42,000 ounces for 2020 (or 8,000 ounces lower than the original estimate of
between 45,000 and 50,000 ounces of gold). However, given that the Company’s three operating mines are already
23,483 ounces ahead of budget at the end of the first half of 2020, the Company has determined that its overall
consolidated production and financial guidance should be maintained.
Fekola Gold Mine – Mali
The Fekola Mine in Mali continued its very st rong operational performance with second quarter gold
production of 147,424 ounces, well above budget by 5% (6,424 ounces), with processed throughput and
recovery better than budget and head grade in-line wi th budget. Compared to the second quarter of 2019,
gold production was significantly higher by 29% (33,5 27 ounces), mainly due to the expansion of the
Fekola mining fleet and optimization of the pit designs and mine plan, which have provided access to higher
grade portions of the Fekola deposit earlier than anticipated in previous mine plans.
The recent political unrest in Mali has not had a material impact on B2Gold’s operations. The Fekola Mine
continues to operate as normal and the Company is maintaining both quarterly budgeted production and
annual production guidance. B2Gold will continue to monitor the situation to ensure that its mining
operations continue normally, providing important economic benefits both to the communities around the
mine, and to regional and national governments. B2 Gold has enjoyed a positive relationship with the
Government of Mali from the beginning of its investment in the country, including most recently, in
partnering with the government to assist the people of Mali in facing the challenges created by the COVID-
19 pandemic and its impact on the mining sector. As one of the largest Canadian investors in Mali, B2Gold
has enjoyed the strong support of the Government of Mali for our in-country investment.
For the second quarter of 2020, mill feed grade, thr oughput and average gold recoveries were 3.1 grams
per tonne (“g/t”) (compared to bud get of 3.1 g/t and 2.07 g/t in the second quarter of 2019), 1.56 million
tonnes (compared to budget of 1.52 million tonnes a nd 1.8 million tonnes in the second quarter of 2019,
which was lower as a result of planned interruptions related to the ongoing mill expansion project) and
94.8% (compared to budget of 93.0% and 94.4% in the second quarter of 2019), respectively.
For the first half of 2020, the Fekola Mine prod uced 311,435 ounces of gol d, well above budget by 7%
(20,435 ounces) and 39% (87,189 ounces) higher than the first half of 2019.
Based on current assumptions, for full-year 2020, the low-cost Fekola Mine is expected to produce between
590,000 and 620,000 ounces of gold at cash operating costs of between $285 and $325 per ounce and AISC
of between $555 and $595 per ounce.
Fekola Mine Expansion
The Fekola Mine expansion project has progressed well through the second quarter of 2020 and is scheduled
to be completed by the end of the third quarter of 2020. Mining fleet expansion equipment (including
excavators, trucks, and drill rigs) continued to arri ve on site and be commissioned throughout the second
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quarter. The mill expansion continues on budget and schedule and was approximately 75% complete by the
end of June 2020, including assembly of major components including cyclone clusters, leach and CIP tanks,
and completion of a double lift on the tailings storag e facility. The mill expansion commissioning team is
scheduled to arrive on site in late July and the mill expansion is expected to be fully commissioned by the
end of the third quarter 2020.
Fekola Solar Plant
The Fekola solar plant engineering and construction progressed well in the first quarter of 2020. However,
in April 2020, due to issues related to COVID-19, the Company made the decision to temporarily suspend
construction activities on the solar plant. Suspending the solar plant installation is not expected to impact
Fekola’s production guidance for 2020 and has increased availability at the Fekola camp to assist mining
operations in isolating more of the critical workfo rce on site and mitigate COVID-19 related travel and
quarantine restrictions. The Company expects the sola r plant construction will be completed within six
months of the restart.
Masbate Gold Mine – the Philippines
The Masbate Mine in the Philippines also continued to perform well through the second quarter of 2020,
despite being limited by a reduced workforce due to COVID-19 restrictions, producing 48,654 ounces of
gold, approximately in-line with budget. Compared to the second quarter of 2019, gold production was
lower by 15% (8,918 ounces), as planned, mainly due to lower than budgeted grade. The Masbate Mine
continued its remarkable safety performance, extendi ng the number of days without an LTI to 592 days
(well over 1.5 years) as at June 30, 2020.
During the second quarter of 2020, processing was gene rally on budget. Mill feed grade was 0.94 g/t
(compared to budget of 0.99 g/t a nd 1.22 g/t in the second quarter of 2019), throughput was 1.99 million
tonnes (compared to budget of 2.0 million tonnes and 2.1 million tonnes in the second quarter of 2019) and
average gold recoveries were 81.0% (compared to b udget of 77.4% and 70.2% in the second quarter of
2019).
For the first half of 2020, the Masbate Mine produced 93,526 ounces of gold, slightly above budget (by 343
ounces) and 19% (21,527 ounces) lower than the first half of 2019. The on-budget production was achieved
despite COVID-19-related constraints, including a five-day mining shutdown in the first quarter and
working with a reduced workforce through the second quarter.
For full-year 2020, the Masbate Mine is expected to produce between 200,000 and 210,000 ounces of gold
in total from the Main Vein and Montana Pits, at cash operating costs of between $665 and $705 per ounce
and AISC of between $965 and $1,005 per ounce. Masbat e’s gold production is scheduled to be weighted
towards the second half of 2020 (54% ), as higher-grade ore from the new Montana Pit is forecast to be
processed during the second half of the year.
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Otjikoto Gold Mine – Namibia
The Otjikoto Mine in Namibia also had a solid second quarter, producing 43,496 ounces of gold, 3% (1,342
ounces) above budget, as processed tonnes and recoveries we re slightly better than budget. Compared to
the second quarter of 2019, gold production was significantly higher by 16% (6,075 ounces), due to higher
grade ore from the Wolfshag Pit (ore production from the pit resumed in the second half of 2019 following
pre-stripping). The Otjikoto Mine continued its rema rkable safety performance, extending the number of
days without an LTI to 826 days (well over 2 years) as at June 30, 2020.
During the second quarter of 2020, the Otjikoto Mine processed 0.87 million tonnes (compared to budget
of 0.85 million tonnes and 0.87 million tonnes in the sec ond quarter of 2019) at an average grade of 1.58
g/t (compared to budget of 1.58 g/t and 1.36 g/t in the second quarter of 2019) and average gold recoveries
of 98.6% (compared to budget of 98.0% and 98.5% in the second quarter of 2019).
For the first half of 2020, the Otjikoto Mine prod uced 85,245 ounces of gold, above budget by 3% (2,705
ounces) and 22% (15,112 ounces) higher than the first half of 2019.
In December 2019, the B2Gold Board approved the de velopment of the Wolfshag underground mine (the
initial underground Mineral Reserve estimate, in the down-plunge extension of the Wolfshag orebody, was
calculated to contain 210,000 ounces of gold in 1.2 milli on tonnes of ore at 5.57 g/t gold). During the first
half of 2020, engineering of the underground mine continued and in the second quarter of 2020 an
underground mining contractor bid process was held for the development of the underground workings up
to the production stopes. In line with previously an nounced schedules, the development of the portal and
primary ramp is expected to commence in the fourth quarter of 2020 and stope ore production is expected
to commence in early 2022.
Based on current assumptions, for full-year 2020, the Otjikoto Mine is forecast to produce between 165,000
and 175,000 ounces of gold, from the Otjikoto and Wolfshag Pits, at cash operating costs of between $480
and $520 per ounce and AISC of between $1,010 and $1,050 per ounce.
Development
Gramalote Project – Colombia
On March 30, 2020, B2Gold had announced at the Gram alote Project in Colombia, a joint venture with
AngloGold Ashanti Limited, a temporary shutdown due to COVID-19. Project operations restarted on May
4, 2020 for Environmental Impact Assessment re lated field activities, with exploration drilling
recommencing on May 11, 2020. The project became fully operational within a week, with appropriate
preventive practices, monitoring, and COVID-19 t esting and tracing protocols in place. During the
shutdown, other aspects of the Feasibility Study su ch as mine engineering review, metallurgical
investigations and process plant design development continued to advance.
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Ongoing exploration work continues with a focus on infill drilling of the Inferred Mineral Resource which
is expected to be completed in August 2020. As previously announced , the Company now expects to
complete the Feasibility Study in the first quarter of 2021.
The Colombian government in Antioquia continues to closely manage levels of business activ ities an d
public movement with a view to gradually reo pening the economy while ensu ring adequacy of medical
facilities including public testing, contact tracing and intensive care units.
Liquidity and Capital Resources
B2Gold continues to maintain a strong financial position and liquidity. As of March 31, 2020, the Company
had cash and cash eq uivalents of $208 million and has continued to add to its consolidated cash position
during the second quarter of 2020. At June 30, 2020, the Company is in a net cash position with its cash
holdings exceeding its debt balances. Final reconciled cash balances as of June 30, 2 020 will be reported
when the Company announces its second quarter of 2020 financial results on August 5, 2020.
About B2Gold Corp.
B2Gold is a low-cost international senior gold producer headquartered in Vancouver, Canada. Founded in
2007, today, B2Gold has operating gold mines in Mali, Namibia and the Philipp ines and numerous
exploration and development projects in various countries including Mali and Colombia. B2Gold continues
to forecast total consolidated gold production of between 1,000,000 and 1,055,000 ounces in 2020.
Qualified Persons
Bill Lytle, Senior Vice President of Operations, a qualified person under NI 43-101, has approved the
scientific and technical information related to operations matters contained in this news release.
Second Quarter and First Half 2020 Financial Results - Conference Call Details
B2Gold will release its second quarter and first half 2020 financial results after the North American markets
close on Wednesday, August 5, 2020.
B2Gold executives will host a conference call to discuss the results on Thursday, August 6, 2020, at 10:00
am PDT/1:00 pm EDT. You may access the call by dialing the operator at +1 (647) 788-4919 (local or
international) or toll free at +1 (877) 291-4570 prior to the scheduled start time or you may listen to the call
via webcast by clicking: https://www.webcaster4.com/Webcast/Page/1493/35606. A playback version will
be available for two weeks after the call at +1 (416) 621-4642 (local or international) or toll free at +1 (800)
585-8367 (passcode 5346877).
ON BEHALF OF B2GOLD CORP.
“Clive JoT. hnson”
President and Chief Executive Officer